Restoring trust in governments

The dramatic leak of 11 million documents from within a Panama law firm, Moossack Finseca, reveals billions of pounds, dollars, euros and other currencies that have enabled their owners to evade taxation by their respective governments.

While full marks should be given to the estimated one hundred international investigative journalists — and the original whistle-blower, of course! — who’ve brought all the secret financial dealings to light, the total money doesn’t really amount to very much relative to the normal amounts of taxation that governments regularly receive every year.

Besides, despite what they may say, governments don’t really want to stop the operations of tax havens like Panama — which they could easily do — because they want to retain a sufficiently high degree of slack in their finances in order to be able to compete with other countries by way of being able to offer preferential corporate taxation.

It’s the demoralisation of the general public that does the real damage. Until governments stop printing money in order to get themselves out of scrapes then trust in the financial world will never return.

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